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Is ObamaCare causing health insurance premiums to rise?

Might ObamaCare’s new rules and regulations being playing some role in the increases? There’s good reason to think the law itself is at least partially responsible.

It’s seems likely, for example, that ObamaCare’s new coverage mandates have contributed to some of the increase in the individual market: Consulting firm Aon Hewitt estimates that those premiums have gone up about 5 percent as a result of the law.

That explains some of the increase. But not all of it. Which is why those looking for another culprit should consider the possibility that a provision intended to help consumers get better value for their money is actually costing them higher premiums.

That provision, often referred to as the 80/20 rule, sets mandatory medical loss ratios (MLRs) for health insurers. The MLR is an accounting requirement which says that insurers have to spend at least 80 percent of their total premium revenue on medical expenses, leaving just 20 percent for administrative costs, marketing, and other non-medical expenditures. Any insurer that fails to meet this target must issue rebates to customers. This year, insurers rebated about $1 billion.

Blowback

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The MLR is an accounting requirement which says that insurers have to spend at least 80 percent of their total premium revenue on medical expenses, leaving just 20 percent for administrative costs, marketing, and other non-medical expenditures.

So the insurance company can’t build up reserves, but has to take on new clients and new obligations, including high risk consumers. Can’t build reserves…has to take new obligations.

I’m sure that won’t lead to anything bad in the event of a heavy payout year (like a bad flu season). /

Well, Obamacare was advertised as reducing health costs and insurance premiums. Now that we have evidence that that is not the case we should be calling it a failure that needs to be repealed. We should not simply just be asking if it is causing insurance rates to rise.

Next up, when you have to switch doctors or insurance plans, even when you like them and don’t want to change, the Dems will blame “greedy insurance companies” and “Republicans.” So predictable and pathetic.

This article is rather naive. Obama increased the costs of doing business massively in dozens of areas and he really has to ponder whether that might, maybe, just have something to do with premiums going up? Ya think?